L&T, Standard Chartered Partner on 700M USD Green Finance Deal

Indian powerhouse Larsen & Toubro (L&T) has teamed up with Standard Chartered for a massive $700 million sustainability-linked trade facility (SLTF), doubling down on its commitment to a greener future.

This comes hot on the heels of L&T’s groundbreaking move earlier this year, when it rolled out India’s first listed sustainability-linked bond worth $60 million under SEBI’s ESG Bond Framework.

This new deal isn’t just about the money—it’s tied to real environmental goals, like slashing greenhouse gas emissions and using less freshwater. Built on the Loan Market Association’s Sustainability-Linked Loan Principles, it meets top global standards for eco-conscious financing. Larsen & Toubro (L&T) has its sights set high, aiming to go carbon neutral by 2040 and water neutral by 2035.

An L&T spokesperson said, “This SLTF reinforces our leadership in sustainable practices. Our targets for carbon and water neutrality drive investments in low-carbon technologies, resource optimization, and biodiversity conservation, embedding sustainability into our corporate ethos.” To keep things open and honest, L&T’s progress will be checked every year by an independent group, and global risk management experts at DNV have already given their thumbs-up to the company’s targets.

Shobana Chawla, who leads sustainable finance at Standard Chartered India, shared, “This facility enables us to support L&T’s decarbonization journey, contributing to a sustainable economy in India. Sustainability is a core focus for Standard Chartered, and we are proud to facilitate L&T’s ambitious environmental targets.”

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This collaboration is a big deal for Indian businesses, showing how major players can lead the charge on climate action. By linking the financing to clear, measurable environmental goals, L&T and Standard Chartered are paving the way for others to follow, proving that big business and sustainability can go hand in hand.